Must Household Businesses Register for Tax in Vietnam? 2026 Rules

Short answer: Yes. Household businesses must register for tax and are issued a tax code; they are obliged to declare and pay taxes in accordance with tax legislation. The presumptive tax regime for household businesses has been abolished — household businesses now declare tax on a declaration basis. From 01/01/2026, household businesses are also no longer required to pay the business license tax. Basis: the Law on Tax Administration 2025 (Law No. 108/2025/QH15, effective from 01/7/2026), Resolution 198/2025/QH15.

Legal basis

• Law on Tax Administration 2025 (Law No. 108/2025/QH15, effective from 01/7/2026, replacing the Law on Tax Administration 2019);
• Resolution 198/2025/QH15 — abolishing the presumptive tax for household businesses; terminating the collection and payment of the business license tax from 01/01/2026;
• Decree 168/2025/ND-CP — registration of household businesses at commune-level business registration agencies.

Household businesses must register for tax

All household businesses are subject to tax registration. When registering a household business at the commune-level business registration agency, information is transferred to the tax authority to issue a tax code under the interlinked coordination mechanism. Household businesses use the tax code to declare and pay taxes, open bank accounts and conduct transactions related to financial obligations.

Types of taxes household businesses must pay

• Value-added tax (VAT): declared and paid under the tax calculation method applicable to household businesses;
• Personal income tax (PIT): calculated on income from the household business’s business activities;
• Special consumption tax, environmental protection tax, etc. (if trading goods or services subject to such taxes);
• Business license tax: terminated from 01/01/2026 — household businesses no longer have to pay it.

Presumptive tax abolished — how do household businesses declare?

Previously, household businesses paid tax under the presumptive method (the tax authority fixed a stable annual tax amount). This policy has been abolished; household businesses now declare tax based on actual revenue, with books, invoices and vouchers.

This requires household businesses to:

• Keep simple accounting books as prescribed;
• Use electronic invoices when selling goods and providing services (per the roadmap);
• Declare and pay taxes on time and based on actual figures.

Tax registration procedures for a new household business

1. Submit the household business registration dossier at the commune-level business registration agency;
2. Receive the household business registration certificate (information is interlinked to the tax authority);
3. Be issued a tax code; register the declaration method and use of electronic invoices with the directly managing tax authority;
4. Make the first tax declaration as guided by the tax authority.

Frequently asked questions

Must low-revenue household businesses declare tax?

Yes. All household businesses must register for tax and declare; the amount payable depends on actual revenue and the taxable thresholds of each tax. Household businesses with revenue below the prescribed thresholds may not have to pay certain taxes but must still declare.

What are the consequences of not registering for tax?

Failure to register for tax and declare tax is a violation of tax law, subject to administrative penalties, tax assessment and back taxes plus late payment interest.

Must household businesses pay the business license tax in 2026?

No. From 01/01/2026, the collection and payment of the business license tax is terminated nationwide.

Notes on applying current legislation

The shift from presumptive tax to declaration is the biggest change for household businesses in many years; those accustomed to presumptive payment should proactively learn bookkeeping and invoicing to avoid violations. If revenue and scale have grown large, consider converting to an enterprise to benefit from support policies and professional management. Contact ANT Legal lawyers at 0966.475.966 for advice.

Common risks to note

• Not registering for tax after receiving the household business certificate;
• Continuing to pay tax under the abolished old presumptive rates;
• Not keeping books or issuing invoices once subject to declaration;
• Mistakenly thinking the abolition of the business license tax means exemption from other taxes.

How can ANT Legal help?

ANT Legal advises on tax obligations of household businesses, supports tax registration, initial tax declaration, conversion of household businesses into enterprises and tax compliance review. For prompt advice, please contact our lawyers at 0966.475.966.

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